Important Updates in the Adelphia Communications Corp. Securities Litigation
Abbey Spanier is co-lead counsel for plaintiffs in the In re Adelphia Communications Corp. Securities Litigation, 03 MD 1529 (LMM)(S.D.N.Y.). This class action arises out of one of the most egregious financial frauds ever uncovered at a public company. From 1998 through 2002, Adelphia Communications Corporation --- the nation's sixth largest cable company --- systematically and fraudulently failed to report billions in loans. Plaintiffs entered into partial settlements with Adelphia's independent auditors, Deloitte & Touche, LLP, and with investment banking firms and lending banks. Judge Lawrence M. McKenna observed: "If the Lead Plaintiff(s) had been represented by less tenacious and competent counsel, it is by no means clear that [they] would have achieved the success [they] did here on behalf of the Class."
The following is intended to provide class members with updated information about their claims and status of litigation.
Settlement Distribution Order
Settlement with the Director and Officer Defendants
On August 18, 2009, Lead Plaintiffs, on behalf of themselves and the members of the settlement class, and defendants John J. Rigas, Timothy J. Rigas, Michael J. Rigas, James P. Rigas, Peter L. Venetis, Erland E. Kailbourne, Dennis P. Coyle, Leslie J. Gelber, Pete J. Metros and Michael C. Mulcahey (the "Director and Officer Defendants") entered into a stipulation and agreement of settlement (the "Director and Officer Settlement"). The settlement resolves Plaintiffs' claims against the Director and Officer Defendants and consists of $6,725,000 in cash (the "D&O Settlement Fund").
To receive your share of the D&O Settlement Fund, you must file a completed Proof of Claim and Release form on or before October 8, 2010. Please visit: www.adelphiasettlement.com for a claim form. However, if you previously filed a claim in the Deloitte Settlement or Bank Settlement and it was not rejected, you do not need to file a new claim form in order to receive a recovery from the D&O Settlement Fund.
The Court has adjourned (rescheduled) the Fairness Hearing to 10:00 a.m. on September 23, 2010, at the United States District Court for the Southern District of New York, 500 Pearl Street, New York, New York 10007-1312. At this hearing the Court will consider whether the Director and Officer Settlement is fair, reasonable and adequate and in the best interests of the Class. If you have additional questions about the Director and Officer Settlement you may contact Valley Forge by calling 1-877-965-3300 or visit www.adelphiasettlement.com.
Abbey Spanier's Cooperation with the Special Master of the Adelphia Victim Fund
On February 25, 2010, the Honorable Lawrence M. McKenna of the United States District Court for the Southern District of New York issued an Order authorizing co-lead counsel for plaintiffs and Valley Forge to transfer class action information to the Special Master of the Adelphia Victim Fund ("AVF"). The AVF was established as a result of two settlements: one between the United States Attorney's Office for the Southern District of New York ("USAO") and Adelphia and the other between the USAO and the Rigas Family. The AVF is a Department of Justice forfeiture fund governed by regulations set forth at 28 C.F.R. Part 9. Pursuant to those regulations the Department of Justice appointed Richard C. Breeden & Co. LLC to act as Special Master to review and process claims and to assist the Department of Justice in the distribution of the AVF to eligible petitioners.
If you have additional questions about the AVF, you may visit www.adelphiafund.com or call (866) 446-4884.